DCF Tool

TMO

Thermo Fisher Scientific Inc. – Testing Laboratories
Thermo Fisher Scientific Inc. is the world leader in serving science, with annual revenue exceeding $25 billion. Its Mission is to enable our customers to make the world healthier, cleaner and safer. Whether the customers are accelerating life sciences research, solving complex analytical challenges, improving patient diagnostics and therapies or increasing productivity in their laboratories, the company is here to support them. Its global team of more than 75,000 colleagues delivers an unrivaled combination of innovative technologies, purchasing convenience and pharmaceutical services through our industry-leading brands, including Thermo Scientific, Applied Biosystems, Invitrogen, Fisher Scientific, Unity Lab Services and Patheon.
Analysis Results
Intrinsic Value $942.74
Latest Price $540.11
Relative Value 43% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 18.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 18.2%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 11.0 10.3
2023 13.0 11.4
2024 15.4 12.6
2025 18.2 14.0
2026 21.5 15.4
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 454 billion. This corresponds to a present value of 305 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 63.7 billion. Adding in the terminal value gives a total present value of 369 billion.

There are presently 391.0 million outstanding shares, so the intrinsic value per share is 942.74.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 20,113,000,000
Current Cash 4,477,000,000
Current Liabilities 13,436,000,000
Current Debt 2,537,000,000
Non-Cash Working Capital (NCWC) 4,737,000,000
Change in NCWC 781,000,000
EBIT 10,221,000,000
Tax Provision 1,109,000,000
Depreciation and Amortization 2,592,000,000
Capital Expenditure -2,523,000,000
Unlevered Free Cash Flow 9,788,314,812
Current Assets 21,957,000,000
Current Cash 10,325,000,000
Current Liabilities 10,304,000,000
Current Debt 2,628,000,000
Non-Cash Working Capital (NCWC) 3,956,000,000
Change in NCWC -17,000,000
EBIT 7,893,000,000
Tax Provision 850,000,000
Depreciation and Amortization 2,325,000,000
Capital Expenditure -1,474,000,000
Unlevered Free Cash Flow 7,798,411,764
Current Assets 11,893,000,000
Current Cash 2,399,000,000
Current Liabilities 6,197,000,000
Current Debt 676,000,000
Non-Cash Working Capital (NCWC) 3,973,000,000
Change in NCWC 327,000,000
EBIT 4,181,000,000
Tax Provision 374,000,000
Depreciation and Amortization 2,277,000,000
Capital Expenditure -926,000,000
Unlevered Free Cash Flow 5,474,800,000
Current Assets 10,625,000,000
Current Cash 2,103,000,000
Current Liabilities 6,147,000,000
Current Debt 1,271,000,000
Non-Cash Working Capital (NCWC) 3,646,000,000
Change in NCWC 473,000,000
EBIT 3,833,000,000
Tax Provision 324,000,000
Depreciation and Amortization 2,267,000,000
Capital Expenditure -758,000,000
Unlevered Free Cash Flow 5,434,285,101
Current Assets 9,421,000,000
Current Cash 1,335,000,000
Current Liabilities 7,048,000,000
Current Debt 2,135,000,000
Non-Cash Working Capital (NCWC) 3,173,000,000
Change in NCWC 548,500,000
EBIT 3,065,000,000
Tax Provision 201,000,000
Depreciation and Amortization 2,033,000,000
Capital Expenditure -508,000,000
Unlevered Free Cash Flow 4,884,870,934
Current Assets 7,021,000,000
Current Cash 786,200,000
Current Liabilities 4,865,800,000
Current Debt 1,255,500,000
Non-Cash Working Capital (NCWC) 2,624,500,000
Change in NCWC 429,900,000
EBIT 2,638,400,000
Tax Provision -1,400,000
Depreciation and Amortization 1,758,000,000
Capital Expenditure -444,400,000
Unlevered Free Cash Flow 4,381,900,000
Current Assets 5,741,200,000
Current Cash 452,100,000
Current Liabilities 4,147,300,000
Current Debt 1,052,800,000
Non-Cash Working Capital (NCWC) 2,194,600,000
Change in NCWC 144,200,000
EBIT 2,451,500,000
Tax Provision -43,900,000
Depreciation and Amortization 1,688,200,000
Capital Expenditure -422,900,000
Unlevered Free Cash Flow 3,861,000,000
Current Assets 6,539,800,000
Current Cash 1,352,000,000
Current Liabilities 5,349,800,000
Current Debt 2,212,400,000
Non-Cash Working Capital (NCWC) 2,050,400,000
Change in NCWC 138,500,000
EBIT 1,904,800,000
Tax Provision 191,700,000
Depreciation and Amortization 1,684,800,000
Capital Expenditure -427,600,000
Unlevered Free Cash Flow 3,125,552,625
Current Assets 9,880,700,000
Current Cash 5,830,500,000
Current Liabilities 3,126,000,000
Current Debt 987,700,000
Non-Cash Working Capital (NCWC) 1,911,900,000
Change in NCWC -67,400,000
EBIT 1,687,300,000
Tax Provision 40,400,000
Depreciation and Amortization 999,900,000
Capital Expenditure -282,400,000
Unlevered Free Cash Flow 2,285,738,825
Current Assets 4,834,800,000
Current Cash 855,300,000
Current Liabilities 2,093,300,000
Current Debt 93,100,000
Non-Cash Working Capital (NCWC) 1,979,300,000
Change in NCWC 18,300,000
EBIT 1,564,200,000
Tax Provision 11,000,000
Depreciation and Amortization 983,700,000
Capital Expenditure -315,100,000
Unlevered Free Cash Flow 2,237,545,407

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